Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was unchanged from the prior quarter but higher than a year ago. Operating cash flow turned positive, but a large increase in capital expenditure drove free cash flow deeper negative and weakened the free cash flow margin relative to both prior periods.
- Revenue was stable while operating cash flow improved to positive from negative in the prior quarter, yet capital expenditure rose substantially, resulting in a more negative free cash flow and a lower free cash flow margin.
- Compared to the previous quarter, revenue was unchanged, operating cash flow improved, capital expenditure was higher, and free cash flow and its margin were lower. Compared to the same quarter one year earlier, revenue was higher, operating cash flow was higher, capital expenditure was higher, and free cash flow and its margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$1.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$720.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$55.0M
Cash generated by operations before capital spending.
CapEx
$775.2M
Capital spending and related asset purchases.
FCF margin
-568.7%
The share of revenue converted into free cash flow.
TTM FCF yield
-22.3%
TTM FCF divided by market capitalization.
Cash flow trend
A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.
| Period | Revenue | Operating CF | CapEx | FCF | FCF margin |
|---|---|---|---|---|---|
| 2025-05-31 | -$33.3M | $6.9M | $198.3M | -$191.4M | 574.8% |
| 2025-08-31 | $64.2M | -$82.0M | $249.4M | -$331.4M | -516.1% |
| 2025-11-30 | $126.6M | -$15.8M | $552.1M | -$567.9M | -448.6% |
| 2026-02-28 | $126.6M | $55.0M | $775.2M | -$720.2M | -568.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 1020.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 612.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Surge
Capital expenditure was significantly higher than in both the prior quarter and the year-ago quarter, far exceeding the improvement in operating cash flow. This was the primary observable factor behind the larger negative free cash flow.
The elevated capital expenditure exerted downward pressure on free cash flow and margin despite stronger operating cash generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable while operating cash flow improved to positive from negative in the prior quarter, yet capital expenditure rose substantially, resulting in a more negative free cash flow and a lower free cash flow margin.
Compared to the previous quarter, revenue was unchanged, operating cash flow improved, capital expenditure was higher, and free cash flow and its margin were lower. Compared to the same quarter one year earlier, revenue was higher, operating cash flow was higher, capital expenditure was higher, and free cash flow and its margin were lower.
The trajectory of capital expenditure relative to operating cash flow should be monitored for its effect on free cash flow.
Valuation context
A cash-flow page should show how much investors are paying for the cash stream, without turning into a full DCF.
| Market capitalization | $8.1B | Used as the denominator for FCF yield. |
| TTM FCF yield | -22.3% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | n/a | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.